Despite the bullish sentiments among large token holders, LINK's price has continued its downtrend. However, technical indicators paint a different picture. Chainlink has been proactive in meeting the growing demand for tokenized assets through its current collaboration with Fidelity International and Signum to provide NAV data on-chain. This partnership aims to offer access to real-time data and better transparency. Despite these efforts, Chainlink’s price has been struggling for a long time, raising questions about investor interest. In the last 24 hours, LINK’s price has dropped over 8%, bringing the value down to $13.27. Over the past month, it has lost more than 24% of its value. LINK has been declining for three years, struggling to regain the all-time high of $52.88 set on May 10, 2021. The best performance in the last three years was during this March rally, where the LINK price surged to a maximum of $21.42, which is less than half of its ATH.
$30 Million Investment Fails To Lift LINK Price
Despite the ongoing decline, whale activity has been consistent with these tokens. Recently, 54 new wallets holding $30 million worth of LINK tokens were created. According to Lookonchain reports, these wallets have withdrawn $2.08 million LINK ($40.28 million) from the centralized exchange Binance over a week. As LINK’s price declined, these large holders, who had not moved their holdings for weeks, snapped up the tokens recently. "This mysterious whale continues to accumulate $LINK! They have accumulated a total of 4,556,684 $LINK ($83.6M) from #Binance via 55 fresh wallets in the past 5 days," Lookonchain tweeted on February 10, 2024. Despite strong sentiments from large investors leading to a slight recovery on July 2, where the price surged to $14.66 before entering another correction, there is strong interest from institutional investors due to Chainlink’s increasing role in blockchain interoperability.
What Do Technical Indicators Say About Recovery?
Overall, LINK is in a complete selling zone, with technical indicators like the Relative Strength Index (RSI), MACD (12,26), Highs/Lows (14), Bull/Bear Power (13), and others favoring the ongoing decline. However, a few analysts have noted the presence of a golden crossover in the hourly charts, which is a minor bullish signal among investors. Nevertheless, the presence of higher short sellers among buyers cannot be ignored, as the recovery might end abruptly. The current LINK price is close to the support point at $13.25. If the price drops below this point, the token might continue to decline. Conversely, if the price bounces back before touching the support, the next resistance lies at $14.27, which could push the price further. Some analysts have suggested that the price might recover to $16 in the upcoming days. Chainlink has built a strong reputation due to its increasing adoption and continuous upgrades, leading analysts to be optimistic about its long-term performance despite the current drop. Michaël van de Poppe, a well-known crypto analyst, has noted recurring patterns in LINK’s price charts, suggesting that the first six months are downward, followed by a bull market, indicating that good days might be ahead as we are now in the second half.
